1. Accounting standards are prepared by regulators in order to assist both preparers and users of financial statements. Explain the advantages and disadvantages of compulsory accounting standards. (10 Marks) 2. In the context of external financial reporting, explain the importance of the qualitative characteristics of relevance and reliability. Explain how there may be trade-offs between these two characteristics. (5 Marks) 3. Briefly explain, using the definition of asset. why employees do not usually appear as assets. (5 Marks) Edit View Insert Format Tools Table